Daewoong’s subsidiaries named lead sponsors for state project to localize raw materials for hyperlipidemia treatments

Daewoong Group said Thursday that its subsidiaries, Daewoong Pharmaceutical, Daewoong Bio, and Daewoong Therapeutics, have been selected as the primary and co-sponsors for the 2024 Material Component Technology Development Project. This initiative, organized by the Ministry of Trade, Industry, and Energy, aims to localize raw material production for hyperlipidemia treatments.

The project aims to localize the production of raw materials for third-generation statin drugs, such as pitavastatin, and develop technologies for intermediates and finished products in Korea. Running for 54 months until December 2028, the initiative will receive 18 billion won ($13.5 million) in government funding for R&D.

As part of the project, Daewoong Group will work on discovering key raw materials, developing intermediates and synthesis processes, and establishing manufacturing technologies for finished products. The company will also implement a purity control system and flexible substance management, adhering to Good Manufacturing Practice (GMP) standards.

According to the Health Insurance Review and Assessment Service (HIRA), the number of hyperlipidemia patients has steadily been rising since 2016, nearly doubling over the past five years. Despite this increase, Korea's self-sufficiency rate for raw materials used in hyperlipidemia treatments is only about 13 percent, with the remaining 87 percent imported from abroad. The agency warns that the localization of these drugs has become critical, as disruptions in the supply chain—particularly during pandemics—could severely impact availability.

In response, Daewoong Group has developed a continuous processing system to ensure a stable supply of raw materials. Unlike traditional batch processing, where each step is handled separately, Daewoong said the company’s continuous process allows for raw materials to flow continuously, thereby maintaining consistent product quality. This innovation not only enhances production efficiency but also reduces production time and cuts manufacturing costs by approximately 30 percent, according to a company official.

Daewoong Group will implement a continuous process system by building a database for each step, developing automation software and devices, and evaluating the performance of the system and the pharmaceutical products produced through it.

"Daewoong Group continues to enhance its quality management and manufacturing capabilities," said Park Seong-soo, CEO of Daewoong Pharmaceutical. "Through this national project, we aim to establish a successful model for localized vertical integration—from raw materials to finished products—and help increase self-sufficiency and global competitiveness in domestic pharmaceuticals."